This thesis studies the labour supply with aspiration-based reference-dependent preferences. The first contribution of the thesis is the theoretical modelling of behavioural contract theory. In Chapter 1, I modify the classical principal-agent model with uncertainty and moral hazard by replacing the Expected Utility preferences of the agent with chance theory preferences (Schmidt and Zank, 2013). Chance theory agents are primarily concerned with the sure wage they can obtain, i.e., the certain component in their contract, as they treat increments in bonuses markedly different to similar changes in sure wages. Similar to the classical predictions, our agents' optimal contracts are contingent payment schemes, however, they differ with respect to the level of the sure wage. I also contrast my predictions to those of the model of Herweg et al. (2010), who assume agents with expectation-based loss-averse preferences. The other contribution of this thesis is the empirical support for the theory of aspiration-based reference-dependent preferences with field data in education economics. In Chapter 2, I study aspiration-based reference-dependent preferences in undergraduate students' performance and effort provision. Students' reference points are set as their targeted grades. I extend a two-period economics-of-education model (Krohn and O'Connor, 2005) by proposing an additional utility function that is based on the difference between the realised grade and targeted grade. I design surveys and collect data by following a group of undergraduate students at the University of Manchester for two semesters of a full academic year with a two-period panel. My results provide evidence for students' reference-dependent preferences in two ways: first, a significant jump in students' proxied utility of grade is found at the reference point, which also implies students are loss averse. Second, the reference point positively affects students' effort provision. I further study the formation of the reference point and its variation over time. My results suggest that students partially update their past realised results into the formation of reference points. Further, the relative change of their reference points depends on the achievement of the past period reference point.

A proficiência e o fluxo de estudantes são desafios importantes a serem enfrentados pelos vários níveis de ensino no Brasil, em especial no ensino médio. Cientes desse desafio, setor público e sociedade civil têm buscado melhorar esses indicadores por meio de alguns programas. O programa Jovem de Futuro é uma dessas iniciativas. Direcionado às escolas públicas de ensino médio, o programa objetiva melhorar a proficiência e fluxo dos alunos por meio de um conjunto de ações focadas em capacitação para a gestão e auxílio financeiro para as escolas. Com o objetivo de verificar o impacto sobre esses resultados, as escolas participantes foram selecionadas por meio de um sorteio aleatório. O presente trabalho realizou análises de impacto desse programa em diferentes dimensões. As estimativas encontradas indicam que o programa teve impacto sobre as notas dos estudantes em quatro das cinco regiões participantes. Quando estatisticamente significante, esse impacto foi de no mínimo 0, 158? para língua portuguesa e 0, 176? em matemática. Com a intenção de entender se os impactos foram diferenciados para determinados grupos de estudantes e escolas, foram também realizadas análises de heterogeneidade. Os resultados apontaram que o programa não teve efeitos diferenciados para os perfis de estudantes analisados. Por outro lado, quando os perfis de escolas são analisados, as estimativas apontam que os estudantes de escolas com melhores indicadores no período pré-tratamento podem ter sido mais beneficiados. O trabalho também realizou a análise de impacto para a probabilidade de evasão e reprovação dos estudantes tratados. Os resultados apontaram que o tratamento diminuiu as chances de evasão e reprovação em regiões onde o programa estabeleceu metas para esses fatores. Finalmente, diante das diferentes direções de impacto sobre notas e fluxo, realizou-se também uma análise de impacto sobre o IDEB. As análises indicaram que em locais onde a piora do fluxo foi relevante os resultados no IDEB não avançaram da mesma maneira do que nas notas dos estudantes. / Low tests scores and low graduation rates are examples of educational challenges in Brazil, especially if we refer to secondary students. Public policies have been created to improve these indices and the \"Jovem de Futuro\" program is one example. We analyzed details of this program to understand if and how it works. \"Jovem de Futuro\" has been a program focused on support for public secondary schools. It provides training for principals and teachers to improve school management and funding for schools. In addition, a randomized controlled trial was designed for selection of treated schools, which ensured our ability to perform a causality analysis. Our results indicate that the program improves student performance in language (Portuguese) and mathematics tests. The scores of treated students increased about 0.2?. Furthermore, we did not find any difference in the performance of students when we grouped them, for example, by sex or race. Our analysis also indicates that students perform better if they are from schools with better previous results. Because repetition and dropout rates are a real problem in schools of secondary level in Brazil, we estimated how effective the program was at changing these rates. Our results indicate repetition and dropout probabilities fell if students are from schools that received goals to improve these rates. On the other hand, if schools did not receive any goal, dropout and repetition probability from students in treated schools increased. Finally, because of these mix effects - better test performance and worse repetition and dropout rates - we calculated and estimated the impact in the Index of Development of Basic Education (IDEB). This index put together: performance in tests and rates of students approved. Our results show that the impact on this index was lower than in the student tests performance in schools from areas with lower approbation rates.

Higher education is the third largest state expenditure behind K-12 and Medicaid but is generally more discretionary than most other budget categories. As demographic trends and economic downturns constrain state budgets, the delivery of state subsidies in higher education has increasingly shifted toward students via grant aid and away from institutions via appropriations. Since the 1990s, many states have changed the composition of their state subsidies in higher education to varying degrees. There is a rich literature that examines the effects of state subsidies on various aspects of the higher education market. This dissertation aims to contribute to the literature on two broad fronts. First, rather than state subsidy levels, theoretical and empirical emphasis is placed on subsidy composition, or the distribution of subsidies across three primary modes of delivery—appropriations, need-based grants, and non-need-based grants. This focus is meant to reflect the policy decision faced by states, especially during times of fiscal stress, and reveal insights into important economic considerations. Second, differential impacts of state subsidies are examined not only with respect to student ability and income but also college inputs of academic quality and amenities. College amenities are an important input in the higher education market in need of more theoretical and empirical analysis. The introduction briefly discusses the economic rationale for public subsidies in higher education and the complexity confronting states to subsidize the cost of college under various constraints and policy goals. Chapter 2 aims to orient the reader to the policy, trends, and research pertaining to state subsidies in higher education. Chapter 3 theoretically examines the response in student demand for educational resources and amenities to changes in state subsidy composition from which several policy implications and directions for future research are considered. Chapter 4 focuses on subsequent effects that changes in demand between educational resources and amenities may have on institutions. State subsidies and institutional expenditures between 1990 and 2016 are examined in order to determine whether the composition of state subsidies causes in-state institutions to alter expenditures in a way that reflects a divergence between educational and amenity inputs. Chapter 5 considers the role of college student migration with respect to state subsidies and student outcomes. State subsidies impact college choice, and in turn, alter the distance students migrate to attend college. The effect of distance on college student success is theoretically and empirically examined. Chapter 6 concludes with a summary and discussion of the main findings as well as ideas and directions for future research.

Holding educators more accountable for the academic achievement of their students has been a central feature of recent education reforms. In several prominent instances, accountability schemes have set pecuniary performance targets that condition on prior scores as a means of controlling for student heterogeneity. Yet doing so introduces a potential dynamic distortion in incentives: teachers may be less responsive to the reform today in an effort to avoid more onerous targets in future — an instance of the so-called `ratchet effect.' The main chapters of this thesis consider possible dynamic distortions from three distinct but related vantage points. Chapter 2 builds a theoretical foundation for understanding the origin of ratchet effects in an educational context. Given an environment where school-level targets depend on student prior scores, I show that such dynamic gaming behaviour depends crucially on variation in the grade horizon of students, with teachers distorting their effort less when their decision affects fewer future scores within the same school. Chapter 3 analyzes the ratchet effect from an empirical perspective. Making use of rich educational panel data from North Carolina, I exploit variation in the grade span of schools to identify ratchet effects, finding compelling evidence of dynamic distortions using a difference-in-differences approach. I then directly estimate the structural parameters of the corresponding model, allowing for complementarities in production between teacher effort and student ability. Using these estimates, the grade five score in K-5 schools would be about 1.25 standard deviations lower under a counterfactual setting without any accountability scheme and 4.6% of a standard deviation higher if ratchet effects were eliminated via a prescribed reduction in each school's incentive target. Chapter 4 explores a potentially important class of mechanisms through which the identified dynamic effects might arise. In particular, school principals may re-allocate teachers across classrooms differentially by grade. By examining the yearly change in teacher assignments to tested subjects, I find evidence that principals re-sort higher quality teachers to higher grades and focus more costly re-sorting on lower grades in response to the reform, which is consistent with the overarching dynamic objective and results of the prior chapter.

Holding educators more accountable for the academic achievement of their students has been a central feature of recent education reforms. In several prominent instances, accountability schemes have set pecuniary performance targets that condition on prior scores as a means of controlling for student heterogeneity. Yet doing so introduces a potential dynamic distortion in incentives: teachers may be less responsive to the reform today in an effort to avoid more onerous targets in future — an instance of the so-called `ratchet effect.' The main chapters of this thesis consider possible dynamic distortions from three distinct but related vantage points. Chapter 2 builds a theoretical foundation for understanding the origin of ratchet effects in an educational context. Given an environment where school-level targets depend on student prior scores, I show that such dynamic gaming behaviour depends crucially on variation in the grade horizon of students, with teachers distorting their effort less when their decision affects fewer future scores within the same school. Chapter 3 analyzes the ratchet effect from an empirical perspective. Making use of rich educational panel data from North Carolina, I exploit variation in the grade span of schools to identify ratchet effects, finding compelling evidence of dynamic distortions using a difference-in-differences approach. I then directly estimate the structural parameters of the corresponding model, allowing for complementarities in production between teacher effort and student ability. Using these estimates, the grade five score in K-5 schools would be about 1.25 standard deviations lower under a counterfactual setting without any accountability scheme and 4.6% of a standard deviation higher if ratchet effects were eliminated via a prescribed reduction in each school's incentive target. Chapter 4 explores a potentially important class of mechanisms through which the identified dynamic effects might arise. In particular, school principals may re-allocate teachers across classrooms differentially by grade. By examining the yearly change in teacher assignments to tested subjects, I find evidence that principals re-sort higher quality teachers to higher grades and focus more costly re-sorting on lower grades in response to the reform, which is consistent with the overarching dynamic objective and results of the prior chapter.

Studies on returns to education disagree as to where these returns are highest. It is suggested that these disagreements are the result of inconsistencies in the data and methodologies used for their estimation. These disagreements specifically refer to where in education governments should invest in order to obtain the highest returns, based on the specific characteristics of their countries (i.e. level of economic development). The purpose of this dissertation is to estimate and determine whether returns to investments in education vary for groups of countries with different levels of economic development. Rates of return to investments in education were estimated through improvements in methodology and data comparability. Subsequently, the differences among these returns and their significance were observed. This study provides evidence to suggest where in education countries should invest based on their specific level of economic development in order to obtain the highest returns to these investments.

In this paper I propose Bayesian estimation of a nonlinear panel data model with a fractional dependent variable (bounded between 0 and 1). Specifically, I estimate a panel data fractional probit model which takes into account the bounded nature of the fractional response variable. I outline estimation under the assumption of strict exogeneity as well as when allowing for potential endogeneity. Furthermore, I illustrate how transitioning from the strictly exogenous case to the case of endogeneity only requires slight adjustments. For comparative purposes I also estimate linear specifications of these models and show how quantities of interest such as marginal effects can be calculated and compared across models. Using data from the state of Florida, I examine the relationship between school spending and student achievement, and find that increased spending has a positive and statistically significant effect on student achievement. Furthermore, this effect is roughly 50% larger in the model which allows for endogenous spending. Specifically, a $1,000 increase in per-pupil spending is associated with an increase in standardized test pass rates ranging from 6.2-10.1%.

This dissertation contains three chapters. Each applies the tools of applied microeconomics to questions in labor economics, the economics of education, and social economics, respectively. In the first chapter, which is joint work with Amanda Pallais, we present the results of a series of field experiments in an online labor market designed to test whether workers referred to a firm by existing employees perform differently from their non-referred counterparts and, if so, why. We find that referred workers have higher performance and lower turnover than non-referred workers. We demonstrate a large role for selection: referred workers perform better and persist longer even at jobs to which they are not referred at a firm where their referrers do not work. Team production is also important: referred workers are much more productive when working with their own referrer than with someone else's referrer. / Economics

This dissertation breaks new ground in qualitative educational research by looking closely at the community and curricula of a well-resourced seven-year-old public high school in a New York City borough, which I call the Legal Studies Academy (LSA). This school created its own nonprofit organization in order to accrue private donations. Its most important “funder and founder” is an elite Manhattan law firm. The relationship between the firm and the school is emblematic of the direction that many urban public schools in the United States are moving: toward increased dependence on private funds to secure the resources deemed necessary for quality twenty-first century education (Anyon 1997; Lipman 2004; 2005). My project explores how the privatization of public institutions affects definitions of social justice and good education in the United States. I document the ways that students and teachers in the LSA community both reproduce and contest school norms. My methods in this two-year study included: teacher-research, participant observation of teachers and students, extensive interviews with teachers, students and parents, conduct of a summer book club / cultural circle, and analysis of data from a schoolwide student questionnaire. I also examine materials the school uses to solicit donations from its funders in relation to cultural constructions of urban students and their teachers in literature and the media. I explore what students’ and teachers’ daily practices of resistance or conformity to these cultural constructions might reveal about the place of democracy, humanization, character education, and critical pedagogy in U.S. public schools that depend on private or corporate philanthropists for resources. This ethnography nuances the often polarized debate around issues of achievement in education in the context of the demands of a global economy by documenting how the daily practices of students, families and teachers reflect on a social structure of education and achievement that, in the United States, ever more unequivocally aligns one’s identity and success with marketability. On a larger scale, it inspires critical questions about the place of democracy and citizenship as juxtaposed with inequities furthered by global racial capitalism. / text

No description available.